3 Things to Know When Negotiating as a Buyer

On Nov 13 2014

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Buying

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If you're looking to buy a property you could find yourself up against some stiff competition. Recent statistics from RP Data showed that all across the country, more and more people are selling homes at better prices than they bought them for.
Whether it's regular home value growth or renovation work that pushes up listing prices, there's one important step in the sales process that can get help you get a good deal on real estate - negotiation with the agent. So how do get good results at the negotiating table?

3 Things to Know When Negotiating as a Buyer

Get the upper hand when negotiating to buy a home

Know Your Limits

If you're looking to buy a property this spring, you could find yourself up against some stiff competition. Recent statistics from RP Data showed that all across the country, more and more people are selling homes at better prices than they bought them for. Whether it's regular home value growth or renovation work that pushes up listing prices, there's one important step in the sales process that can get help you get a good deal on real estate - negotiation with the agent.

So how do you get satisfactory results at the negotiating table?

If you're itching to get into a new property, it is always tempting to jump in and settle for what the seller wants, even if it's out of your range. But it's important to be patient. Set yourself a maximum price to begin with, and be realistic about it. For example, you aren't likely to find a Sydney CBD bungalow for under $500,000. You could engage a valuer to give you a concrete reading on what a property is worth, and then work from there. But make sure you have set a bar that is as high as you will go, and stick to it - don't sell yourself short!

Know the Seller

Whether you're dealing with an agent or the seller themselves, it's crucial to try and get a feel for the situation they are in. If they are desperate to get out of the property, you may be able to discuss a lower price than anticipated - but don't push it too far or you could lose a sale. By using an agent, they will be able to do extensive research around the property and work out the reasons a seller is getting out of their home, which can give you valuable leverage at the negotiating table.

Know the Market

By getting around and understanding the value and growth of the wider property market, you can take some excellent bargaining chips to the table when you try to buy. If a listing price is well above that of surrounding homes, you can mention this - it also shows you've done your research, meaning no beating around the bush from the people you negotiate with. You'll also get a feel for the neighbourhood, and whether it's somewhere you truly want to live.

By putting in this few hours of extra work and negotiation, you could save yourself thousands on a home - not a bad hourly rate if you ask us!